The Chancellor will deliver the Autumn Budget on 26 November 2025. This year’s Budget is expected to focus heavily on the public finance deficit, with further tax rises a strong possibility. Below is a summary of what is already in motion, what is unlikely to shift, and what may be announced.
Note: We’ll be hosting live commentary and analysis during the Chancellor’s Autumn Budget on 26 November. You’ll be able to follow key announcements in real time and understand what they mean for you and your business. We’ll share the joining link ahead of the event, so keep an eye out for our updates.
What’s already happening from previous Budgets
Several measures from the 2024 Autumn Budget are still progressing. These will continue to shape the tax position for individuals, business owners, and investors.
Capital Gains Tax (CGT)
- CGT increases took effect on 30 October 2024 and 6 April 2025.
- The rate applying where Business Asset Disposal Relief (BADR) is used will rise from 14% to 18% on 6 April 2026.
Inheritance Tax (IHT)
More changes are already scheduled:
- Restrictions on 100% relief for business and agricultural property from 6 April 2026.
- Unused pension funds and death benefits will be included in IHT estates from 6 April 2027.
What’s unlikely to change
Income Tax and National Insurance
The Labour party manifesto committed to not raising taxes for working people.
However, indications are that this commitment may well be broken in some form or another. It is likely that higher earners and those with investment income may take the largest hit.
Income Tax thresholds appear set to remain frozen until 5 April 2030, in line with the IHT threshold freeze
There was a similar commitment to not increasing the rate of VAT.
Corporation Tax
- The 25% main rate remains.
- The small profits rate and marginal relief continue.
- The £1 million Annual Investment Allowance stays in place.
- Full expensing remains permanent.
- It is not anticipated that there will be further changes to the rates of Corporation Tax.
What may change in Autumn Budget 2025
The government needs revenue. Several areas have been repeatedly reported in the press a being under consideration.
National Insurance
- NICs could be extended to landlords, bringing them closer to trading business rules.
Pension tax relief
- Pension tax relief may shift to a flat rate (e.g., 30%), rather than the saver’s marginal rate.
Inheritance Tax
- Further restrictions could apply to reliefs, including limits on exempt lifetime gifting.
VAT
- The £90,000 VAT registration threshold may be reduced..
- The 5% VAT rate on domestic fuel may fall to 0%.
Planning ahead
We won’t know the full picture until the Chancellor speaks on 26 November. Reviewing your affairs now is the best way to stay ahead of possible changes.
If you have any questions or would like advice, please contact Neal Groves, Tax Partner, Beavis Morgan.
Join us on the day: We’ll be sending the Budget Day live feed link before the event, with commentary and analysis as announcements unfold. Look out for our posts with the link closer to the day. If you would like to receive our Client Budget Summary Report after the event, email georgina.swain@beavismorgan.com
